Prosci Webinar: Ready Set Change Building a Change Capable Organisation
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This document summarizes a presentation on building change capability in organizations. It discusses how change is now constant and the need for organizations to become change-capable. It provides statistics showing low success rates of change initiatives and a lack of change capabilities in many organizations. The presentation defines change management and its role in increasing success rates. It outlines moving from isolated change management projects to enterprise-wide change management. Key steps are discussed, along with common mistakes. Models for assessing change management maturity are presented, along with regional data on adoption.
Prosci Webinar: Ready Set Change Building a Change Capable Organisation
- 1. Ready, Set, Change! Building a change capable organisation Presented by Catherine Smithson November 2015 Prosci Change Management Webinar Series 4, 2015
- 2. Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change. • Prosci Primary Affiliate Australia and New Zealand. 2 Getting back to Normal… it’s a town in Illinois USA.
- 3. Prosci by the numbers • 1994 – Founded in Loveland (Denver) Colorado, USA • 8 global Benchmarking Reports • 16 years of longitudinal research • 3,400+ research participants • 63 countries • 80% Fortune 500 companies • 30,000+ Certified practitioners worldwide • 4,000+ Certified practitioners Australia/New Zealand 3
- 4. Prosci 2014 Best Practices in Change Management Benchmarking Report • 822 participants • 63 countries • Top 3 roles: • Change Management team leader • External consultant • Project team leader • 244 pages • 38 new topics The largest body of Change Management knowledge in the world. 4 2% 2% 3% 5% 14% 15% 25% 34% Middle East Latin America Asia and Pacific Islands Africa Europe Canada Australia and New Zealand United States
- 5. Snapshot of participants - ANZ 5
- 6. Topics • Why organisations needed to move to enterprise level Change Management • What are the triggers for starting? • Which activities have the biggest impact? • Who owns or should own, the Change Management function? • Q & A 6 “Change is the law of life. And those who look only to the past or present are certain to miss the future.” John F. Kennedy
- 7. Why do we need to change the way we change? 7
- 8. Change is the new “business as usual” 8 • Volume • Speed • Complexity • Risk • Transparency • Others? “Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.” Dan Millman
- 9. Yet success rates of change remain low IBM Making Change Work Report While the Work Keeps Changing Report August 2014 1,400 organisations globally, over 20 industries,
- 10. And many organisations lack change capabilities 10 IBM Making Change Work Report While the Work Keeps Changing Report August 2014 1,400 organisations globally, over 20 industries,
- 11. 76% CEOs see the need for investing in enterprise change capability “Our ability to adapt is a key source of competitive advantage.” Pricewaterhousecoopers 2008 “Organisational agility is critical to business success.” McKinsey 2009 90%
- 12. Moving from “hit and miss” change…. 12 to consistent, successful implementation and benefit realisation with high employee engagement
- 13. 13
- 14. Change Management increases success rates by a factor of 6 Change Management increases the probability of success • "Of the 165 research participants who reported having excellent change management effectiveness, 96% met or exceeded project objectives" • "Participants with the highest level of change management effectiveness were 6X more likely to meet or exceed project objectives" 14 16% 46% 77% 96% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Poor (n=244) Fair (n=653) Good (n=834) Excellent (n=165) P e rc e n t o f re s p o n d e n ts th a t m e t o r e xc e e d e d p ro je c t o b je c tiv e s Overall effectiveness of change management program * Data from 2007, 2009, 2011 and 2013 Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition. Correlation of change management effectiveness to meeting project objectives 2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013. 14
- 15. 15 Change Management drives staying on budget 48% 63% 71% 81% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Poor (n=258) Fair (n=737) Good (n=1001) Excellent (n=180) P e rc e n t o f re s p o n d e n ts th a t w e re o n o r u n d e r b u d g e t Overall effectiveness of change management program * Data from 2007, 2009, 2011 and 2013 Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition. Correlation of change management effectiveness to staying on budget Percentageofrespondentsthatmetorexceeded projectobjectives
- 16. Sponsor effectiveness directly correlates to project success 16 25% 34% 67% 85% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sponsor was very ineffective (score < 2) Sponsor was ineffective (score between 2 and 3) Sponsor was effective (score between 3 and 4) Sponsor was very effective (score between 4 and 5) P e rc e n t o f re s p o n d e n ts th a t m e t o r e xc e e d e d p ro je c t o b je c tiv e s Average sponsor effectiveness rating Copyright © 2014 Prosci. Best Practices in Change Management – 2014 Edition. Correlation of sponsor effectiveness to meeting project objectives Percentageofrespondentsthatmetorexceeded projectobjectives
- 17. A new definition of Change Management 17
- 18. A new definition of Change Management The processes, tools and techniques to manage the people side of change to achieve the required business outcome. Common set of process and tools Leadership capability Strategic capability that enables the organisation to be flexible & responsive ©Prosci. Used with permission under terms of license agreement. www.change-management.com
- 19. “So, does anyone else feel that their needs aren’t being met?”
- 20. Just over 50% of organisations globally are actively building enterprise Change Management 20 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No Don’t know Actively working to deploy Change Management 2011 2013
- 21. Australia & New Zealand are early adopters 21 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Middle East Latin America Europe Asia and Pacific Islands Canada United States Entire study population Africa Australia and New Zealand Actively working to deploy Change Management by region
- 22. Early adopting industries 22 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Entire Study Population Oil and Gas Information Services Utilities Retail Trade Mining Services - Other (except Public Administration) Banking Finance Insurance Pharmaceutical Participants actively working to deploy by industry
- 23. Major gap between Change Management at project and enterprise levels 23 of organisations apply a Change Management methodology of organisations applying Change Management methodology to all projects 2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013.
- 24. Triggers to get started • Volume and complexity of change underway • Past program or project failure • Demonstrated success of projects applying Change Management • Risk Management • Employee Engagement and/ or Culture Survey results • Others?
- 25. Project level vs enterprise level Change Management Change Management is like building a house How do we effectively manage the people side of change on one project or initiative? ECM is like designing a subdivision How do we bring Change Management to our entire organisation? ©Prosci. Used with permission under terms of license agreement. www.change-management.com
- 26. Institutionalizing change management practices, processes, capabilities and competencies Building organizational change management capabilities and competencies Deploying change management broadly throughout the enterprise All employees have internalised their role in leading change “Great change management” is second nature & part of our DNA Change management is the organisation’s Standard Operation Procedure Change management is the norm on projects and initiatives What is Enterprise Change Management ? ©Prosci. Used with permission www.change-management.com
- 27. PMOs are leading change capability building 2014 Best Practices in Change Management Report. 822 participants in 63 countries. Prosci copyright 2013. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Other Grassroots Within business units, Operations Independent change management group Corporate and Shared Services Strategy, Transformation, Planning Executive Leadership Information Technology (IT) Organisational Development (OD) Human Resources (HR) Project Management Office (PMO) Percentage of respondents Originator of the effort
- 28. Most Change Management groups are located in the PMO 28 38% Had a Change Management Office or functional group globally 45% Australia & New Zealand Top Locations • PMO: 28% • HR: 24% • OD: 17% • IT: 14% • Strategy/Transformation:13% Key Roles 1. Own & maintain methodology 2. Own & maintain tools 3. Consulting support to Change Management resources on projects 4. Maintain CoP 5. Provide resources for projects 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
- 29. Only 23% report high levels of success 29 0% 10% 20% 30% 40% 50% 60% 70% Very unsuccessful Unsuccessful Moderately successful Successful Extremely successful Success of deployment effort 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
- 30. Features of organisational capabilities 30 • Take years or decades to build • Pay off is long term • Become an asset – intangible • Difficult for competitors to identify, imitate or match • Can erode or disappear • Can be difficult to change • Consistent investment • Robust if embedded across multiple processes and systems Source: Change Power – Turner and Crawford,1998
- 31. Prosci Change Management Maturity Model™ People-dependent without any formal practices or plans Many different tactics used inconsistently Examples of best practices evident Selection of common approach Continuous process improvement in place Highest rate of project failure, turnover and productivity loss Little or no change management applied Adhoc or Absent Level 1 Some elements of change management are being applied in isolated projects Isolated Projects Level 2 Comprehensive approach for managing change is being applied in multiple projects Multiple Projects Level 3 Organization-wide standards and methods are broadly deployed for managing and leading change Organizational Standards Level 4 Highest profitability and responsiveness Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and competitive edge Organizational CompetencyLevel 5 People-dependent without any formal practices or plans Many different tactics used inconsistently Examples of best practices evident Selection of common approach Continuous process improvement in place Highest rate of project failure, turnover and productivity loss Little or no change management applied Adhoc or Absent Level 1 Some elements of change management are being applied in isolated projects Isolated Projects Level 2 Comprehensive approach for managing change is being applied in multiple projects Multiple Projects Level 3 Organization-wide standards and methods are broadly deployed for managing and leading change Organizational Standards Level 4 Highest profitability and responsiveness Change management competency is evident in all levels of the organization and is part of the organization’s intellectual property and competitive edge Organizational CompetencyLevel 5 Copyright Prosci 2010 ©Prosci. Used with permission www.change-management.com
- 32. Five Capability areas • Leadership – who is leading or sponsoring the deployment of Change Management? • Application – What % of projects apply Change Management processes? What is the ‘reach’ or ‘breadth’ of application across the organisation? • Competencies – what level of training is available for all levels? How do all levels demonstrate competency? • Standardisation – what is the standard approach? Who ‘housekeeps’ Change Management? • Socialisation – How do we share success stories and maintain commitment to better managing change? 32©Prosci. Used with permission www.change-management.com
- 33. Prosci Change Management Maturity Audit 33 2.06 0 1 2 3 4 5 Prosci ® Change Management Maturity ModelTM Audit Level Level Level Level Level Overall Change Management Maturity Model Audit Score 2.88 2.38 1.58 2.08 1.40 0 1 2 3 4 5 Capability Area 1: Leadership Capability Area 2: Application Capability Area 3: Competencies Capability Area 4: Standardization Capability Area 5: Socialization Prosci ® Change Management Maturity ModelTM Audit Level Level Level Level Level 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
- 34. Change Management maturity by region Region (plus % of study participants from region) Average Maturity Level All regions (100%) 2.66 United States (34%) 2.69 Australia and New Zealand (25%) 2.68 Canada (15%) 2.62 Europe (14%) 2.66 Africa (5%) 2.59 Asia and Pacific Islands (3%) 2.88 Latin America (2%) 2.67 Middle East (2%) 2.31 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
- 35. Level of maturity Australia & NZ 0% 10% 20% 30% 40% 50% 60% Level 1 Level 2 Level 3 Level 4 Level 5 Maturity Model data for Australia and New Zealand 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
- 37. Key ingredients for success • Treat ECM as a project • Secure sponsorship before moving forward • Build a strong case for Change Management • Multi pronged approach • Adopt a single, effective, consistent methodology and upskill people to use it • Position Change Management as everyone’s job 37 2014 Best Practices in Change Management Report. 3400 participants in 63 countries. Prosci copyright 2013.
- 38. Mistakes to avoid 1. The training trap 2. Moving forward without Executive Sponsorship 3. Failing to build the business case for Change Management.
- 39. Q&A
- 40. More info 40 Being Human beinghuman.com.au Prosci • change-management.com • prosci.com • portal.prosci.com • Change Management Maturity Audit (Enterprise tool) • CMROI Calculator (start up/ business case: project/ program level) • E Best Practices Audit (project level tool)
- 41. Use the right tool for the job Tool Project/Program Level Or Enterprise Level? Who should participate? CMROI Calculator Project level Ideally at business case, or early planning stage • Change manager (facilitate it • Project/Program manager • Project Sponsor • Business owner • Steering committee PCT Analyzer Project Commencement and key milestones • Change manager (facilitate it • Project/Program Manager ADKAR Dashboard (coming soon) Project/Program Commencement and key milestones • Impacted groups who need to adopt the change • Managers • Team members eBest Practices Audit Project Key milestones Completion - PIR • Change Managers • Project team • Selected sections – managers, staff 41
- 42. Use the right tool for the job 42 Change Management Maturity Audit Enterprise • Change Managers • Sponsor of the ECM effort • Program/Project managers ECM Roadmap Enterprise • Change Managers • Sponsor of the ECM effort • Program/Project managers Change Management Maturity Audit Enterprise • Change Managers • Sponsor of the ECM effort • Program/Project managers • Others involved in ECM (eg HR/OD)